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NEWS
Ofgem has launched a consultation on proposals to introduce an early competition Offshore Transmission Owner (OFTO) build model and update the existing late competition OFTO build model for offshore electricity transmission assets, with the aim of supporting future offshore network delivery and coordinated infrastructure identified through the National Energy System Operator’s Centralised Strategic Network Plan. Ofgem proposes that the early competition model would apply to both radial and non-radial assets and would generally remain optional for generators, although mandatory centralised tenders could apply to certain strategically coordinated projects. The consultation sets out proposals for revised tender processes, qualifying project criteria, non-price evaluation measures, delay-risk allocation, cost adjustment mechanisms and delivery assurance measures, including milestone-based penalties, post-award securities and Preliminary Works Payments. Ofgem also proposes adapting the onshore Competitively Appointed Transmission Owner cost assessment framework for offshore projects to manage cost uncertainty during development, while retaining the existing Tender Revenue Stream approach with revenue periods of up to 25 years. For the late competition model, Ofgem proposes updated tender arrangements for more mature projects, including flexibility for Engineering, Procurement and Construction structures and revised timing aligned with Contracts for Difference allocation rounds and wind farm investment decisions. Ofgem said the proposals are intended to provide greater flexibility, improve coordination and establish a clear regulatory framework ahead of future offshore transmission projects. The consultation closes on 2 July 2026.
NEWS
Ofgem has launched a consultation on improving the experience of obtaining electricity network connections in Great Britain. It has decided to introduce consistent minimum requirements for electricity transmission and distribution companies and the National Energy System Operator. These will cover the information given to customers, communication during the connections process, the content of connection offers and the handling of changes during delivery. Ofgem also plans stronger incentives for timely delivery through guaranteed performance standards for distribution network operators and liquidated damages provisions in transmission owners’ connection agreements. It proposes clearer performance reporting and more consistent arrangements for resolving disputes.
NEWS
Ofgem has launched a consultation on notice period options for electricity distribution network charges at the start of the next electricity distribution price control period (ED3), scheduled to run from April 2028 to 2033 under the RIIO-ED3 framework. The consultation focuses on the notice period for the first two years of ED3. The consultation follows a formal request from distribution network companies for a derogation from the existing 15‐month notice period. The companies have proposed alternative options for a shorter notice period. Ofgem aims to issue a final decision by the end of September 2026. The consultation closes on 20 August 2026.
NEWS
Ofgem has launched a consultation on implementing the enduring regulatory framework for the National Energy System Operator (NESOS). The proposals cover governance arrangements, cost recovery mechanisms, and modifications to industry codes to support NESOS’s role in delivering a secure, flexible and decarbonised energy system. Ofgem is seeking views on the proposed governance structure for NESOS, including statutory functions and accountability mechanisms, as well as on arrangements for technical and security oversight and on cost-recovery options to enable NESOS to meet its obligations effectively. It also seeks feedback on the necessary changes to industry codes to reflect NESOS’s enduring role. The consultation closes on 24 January 2026.
NEWS
Ofgem has launched a consultation on its proposed enforcement guidelines and penalty policy for heat networks regulation in Great Britain. The consultation sets out Ofgem's approach to using its new enforcement powers under the Energy Act 2023 (EnA 2023) and the Heat Networks (Market Framework) (Great Britain) Regulations 2025, SI 2025/269, including how it will investigate breaches and apply financial penalties or consumer redress orders. The consultation closes on 6 October 2025.
NEWS
Ofgem has opened a consultation on proposed licence requirements for distribution network operators (DNOs) to maintain asset registers supporting asset‐visibility data exchange. It aims to improve visibility of network infrastructure and decarbonisation planning. The consultation, part of the Clean Flexibility Roadmap, presents four options for standardising DNO asset registration processes and supporting data exchange. Responses are due by 6 February 2026, following which Ofgem will review feedback and develop recommendations and next steps for the chosen option later in 2026.
NEWS
Ofgem has launched a consultation seeking views on a proposal to exempt electricity suppliers with fewer than 50,000 domestic customers from the Universal Service Obligation (USO). Under the proposal, qualifying suppliers would not be required to offer electricity supply to all domestic consumers until they reach the threshold, at which point the USO would apply. Ofgem proposes to implement this change through a licence modification under section 11A of the Electricity Act 1989. Ofgem considers the measure a targeted and proportionate intervention that could reduce barriers to market entry, support innovation and encourage specialist business models while maintaining consumer protections. The consultation seeks views from energy suppliers, consumer groups and charities on the potential benefits, risks and safeguards associated with the proposal, and on whether the 50,000-customer threshold is appropriate. The consultation closes on 16 September 2026. Subject to stakeholder responses and internal approvals, Ofgem may proceed to a statutory consultation on the licence modification in October 2026.
NEWS
Ofgem has launched a consultation on proposals to expand self-build and transfer arrangements for electricity transmission connections in Great Britain. Demand, generation and storage customers would be able to build all sole-use assets from their connection point to the existing transmission system and transfer them to the transmission owner. The assets would need to be for sole use when the adoption agreement is signed. The proposals would expand the current scope, which mainly limits self-build and transfer to within 2 km of the existing transmission system. They form part of the Connect pillar of Ofgem’s demand connections reform programme and aim to give customers greater control over delivery, with potential reductions in costs and construction times. Stakeholders have cited possible cost savings of around 20% and time savings of one to two years where no reinforcement work is required. However, benefits would vary between projects, and faster construction would not necessarily bring forward connection dates where enabling or wider network works are needed. Wider network reinforcement works and decisions on where assets connect to the existing transmission system would remain outside the proposed scope.
NEWS
Ofgem has launched a consultation on a proposal to temporarily extend the Ban on Acquisition-only Tariffs (BAT) from 1 April 2027 to 31 March 2028. The BAT requires energy suppliers in the GB domestic retail energy market to make tariffs offered to new customers available to existing customers. Ofgem is also proposing to retain the associated market-wide derogation, which allows suppliers to offer retention-only tariffs exclusively to existing customers. Ofgem considers that extending the BAT would continue to provide consumer protection, particularly for vulnerable and disengaged fix-term tariff customers, while supporting sustainable competition and market stability. The consultation closes on 25 September 2026, with a decision expected in November 2026.
NEWS
Ofgem has launched a consultation on extending the temporary ban on acquisition-only tariffs (BAT) and the associated market-wide derogation for an additional year, from 1 April 2026 to 31 March 2027. Ofgem notes that the permanent status of the BAT is being considered as part of its wider work on future price protection and would be the subject of a separate statutory consultation to amend existing standard licence conditions. The consultation closes on 24 September 2025.
NEWS
Ofgem has launched a consultation, seeking views on the National Energy System Operator (NESO)’s request to competitively tender a sub-component of project WCN2, a new circuit between South West Scotland and North West England. This is the first project NESO has requested for tendering under the proposed onshore electricity transmission Early Competition framework. The consultation closes on 8 January 2025.
NEWS
Ofgem has launched a consultation on proposals for the future of regulated traditional gas metering obligations following the expiry of the current licence conditions on 31 December 2025. Ofgem’s preferred approach is to transition to a voluntary market arrangement from 1 January 2026 to 31 December 2026, allowing Gas Distribution Networks and National Gas Transmission to deliver services commercially while maintaining key consumer protections. The consultation covers proposed licence changes and the removal of sunset obligations, alongside new service standards and pricing principles under Ofgem’s proposed post-2025 voluntary agreements. The consultation runs until 1 December 2025.